Cost Plus Posts $32M Loss, Increased Sales for First Quarter

May 21, 2008  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on May 2008 Cost Plus, owners of World Market retail stores, posted first quarter net sales of $211.7 million, a 4.5 percent increase from $202.5 million posted in the same quarter last year.

The retailer reported a net lost of nearly $32 million for the quarter ended May 3. During the first quarter last year, the company lost $11.1 million.

The company said the quarter’s performance was challenged by an early Easter, which caused the retailer to separate its Easter and spring marketing campaigns.

“Our first positive same store sales quarter in four years is the strongest indicator to-date that the price/value relationship we have reestablished is resonating with our customers,” said Barry Feld, president and chief executive officer. “Our current merchandise assortments are fresh, unique and represent strong value, and as a result are attracting renewed and sustainable customer traffic.”

During the quarter, Cost Plus closed 13 stores and exited eight media markets.

The retailer also provided financial guidance for the second quarter of fiscal 2008. The company is projecting sales for the second quarter to fall between $217 million and $224 million, based on same-store sales performance in the range of -1 percent to 2 percent.